Zynga Shares Soar on Hopes of New CEO

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of social gamer Zynga (NASDAQ: ZNGA  ) have soared today by as much as 13% after AllThingsD reported that the company may get a new CEO.

So what: Microsoft (NASDAQ: MSFT  ) entertainment and gaming exec Don Mattrick is reportedly leaving the software giant and heading to Zynga to take a high-level position. Investors are expressing optimism that Mattrick will take over as CEO following Zynga's fall from grace under current CEO and founder Mark Pincus.

Now what: Mattrick has been at the center of Microsoft's controversy over its Xbox One, and the exec has extensive experience in the gaming industry. Zynga went public at $10 per share in late 2011, and is in desperate need of a turnaround. In April, Pincus agreed to cut his salary to $1 as a symbolic gesture. A month ago, the company laid off nearly a fifth of its workforce, which is expected to save $70 million to $80 million. If the reports are accurate, Mattrick's salary would be far more than $1, but hopefully investors will get something for what they pay for.

Interested in more info on Zynga? Add it to your watchlist by clicking here.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2518995, ~/Articles/ArticleHandler.aspx, 9/30/2016 6:30:43 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 4:00 PM
ZNGA $2.91 Up +0.10 +3.56%
Zynga CAPS Rating: *
MSFT $57.60 Up +0.20 +0.35%
Microsoft CAPS Rating: ****